EU wants India, China to join Iran oil embargo.

Discussion in 'Foreign Relations' started by Poseidon, Jan 14, 2012.

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Should India join the Iran Oil embargo?

  1. Yes,Absolutely.

    7 vote(s)
    46.7%
  2. No,Never.

    8 vote(s)
    53.3%
  1. Poseidon

    Poseidon Regular Member

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    EU wants India, China to join Iran oil embargo.
    Indrani Bagchi, TNN | Jan 14, 2012, 04.04AM IST

    NEW DELHI: As European Union readies its oil embargo plan against Iran, EU countries have asked two of the world's largest importers of Iranian oil, India and China, to join the embargo.

    India is unlikely to join any such international effort unless they are mandatory UN sanctions. However, the financial curbs on Iran's central bank by the US as well as Iran's reciprocal threat to shut off the Straits of Hormuz have prompted India and other Asian economies to diversify their oil sources anyway.

    While top European officials have proposed the idea to India, German chancellor Angela Merkel is expected to push the case with China when she visits Beijing in a couple of weeks, sources said. Germany has significant business interests in Iran, and is also home to a large number of Iranian expatriates. India in 2011 started using a German-Iranian bank to route its oil payments to Iran, before that came under sanctions.

    While EU has not implemented US sanctions against Iran's central bank yet, sources said this would happen soon, affecting large quantities of German business with Iran. EU countries are reportedly working on an oil embargo plan that takes effect in six months.

    Iran is India's second largest supplier of oil, but sanctions against Iran's banks have made it increasingly difficult for India to pay for Iranian oil. India has also been reducing its exposure to Iran of late, with Saudi Arabia making up the bulk of the difference. Other countries like Iraq, Kazakhstan, Venezuela and Nigeria are now part of India's basket of supplier countries.

    Indian oil companies took out oil contracts for this year earlier this week and signs are that the diversification programme will continue. However, India remains politically allied with Iran, while opposing its nuclear weapons ambition. India considers Iran to be an important power in the Gulf and has several important stakes in that country. Therefore, India is fighting to keep a toehold of influence in the country and not lose it to the Chinese.

    China is the largest importer of Iranian oil and has openly dismissed the US sanctions. Much more than oil, China has almost $120 billion investments in Iran which it would be concerned about. However, sources said China would come around when everybody else did. China too is diversifying its oil sources, and this week, Chinese Premier Wen Jiabao is travelling in Saudi Arabia, Qatar and UAE, all of whom oppose Iran.

    This week, reports said the US imposed sanctions on China's state-run Zhuhai Zhenrong Corp, which it said was Iran's largest supplier of refined petroleum products. Reuters reported that US also imposed curbs on Singapore's Kuo Oil Pte Ltd and FAL Oil Company Ltd, an energy trader. While India remains quiet about its financial institutions in Iran, it is believed that a smaller nationalized bank, Union Bank of India, is being used for Iran buys.

    The fear in India's policy leadership is that because of external circumstances, India might lose out to China in Iran. Reports have surfaced that China might be squeezing Iran for cheaper oil, and might be leveraging its position as the one defying US sanctions to push its influence further.

    EU wants India, China to join Iran oil embargo - The Times of India
     
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  3. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    EU has to offer some alternative for India after India being refused NSG membership, what alternative energy source does India have?? EU has guaranteed energy security ,China and India do not ;and developing economies have a top priority to have enough energy to keep growing.
     
  4. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    China, India, Japan and even S. Korea are all actively looking for alternate sources. They will comply with reduction goals, it doesn't mean completely turning off the tap. The threat of both US and EU sanctions are not worth the pain of doing a little business with backwater Iran.
     
  5. The Messiah

    The Messiah Bow Before Me! Elite Member

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    EU can go and do one.

    We will do what is in our interest.
     
  6. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    India would have to go back to coal and then it would be a carbon credit problem.
     
  7. SpArK

    SpArK SORCERER Senior Member

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    If EU and US can guarantee an attack any time soon and RESET the political structure and honor the pre attack deals we have with them, then why not?
     
  8. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    why would Iranians honor any deals if they lost support from a nation the deal was made with??
     
  9. SpArK

    SpArK SORCERER Senior Member

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    After any attacks , its always the puppet ones that comes in..

    And they need to sell oil to somebody.. we are just joining a world embargo.
     
  10. HeinzGud

    HeinzGud Senior Member Senior Member

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    Sri Lanka is ready for Iranian oil !:p
     
  11. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    The attack on Iran will come in 6 months time when nations have gotten off the reliance of Iranian oil. If you aren't smart enough to take the hint now, you are going to suffer a major problem when the taps run dry.
     
  12. KS

    KS Bye bye DFI Veteran Member

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    When was it refused..?
     
  13. LETHALFORCE

    LETHALFORCE Moderator Moderator

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  14. SpArK

    SpArK SORCERER Senior Member

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    If so India needs to act quickly and get as much of Iranian oil and store it.

    If tommorow US or Israel attacks Iran, we cant do a damn thing about it rather than cry in International forums as seen with arab springs.
     
  15. SpArK

    SpArK SORCERER Senior Member

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    You don't have that much of an energy need.. adjust urself with coconut oil for the time being.
     
  16. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    The puppet listens to the master who is also interested in the oil.
     
  17. SpArK

    SpArK SORCERER Senior Member

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    Thats why the guarantee clause in my first opinion post...:p
     
    LETHALFORCE likes this.
  18. civfanatic

    civfanatic Retired Moderator

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    India for once should show some backbone and say 'NO'.
     
  19. sayareakd

    sayareakd Moderator Moderator

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    what is their for us. If Iran is attacked and power is changed, we better get hands on some of their missiles.
     
  20. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

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    I hardly believe US would attack Iran. The public opinion in US won't support another war and NATO won't join in looking at the situation in Europe. Obama is a peace prize winner, so a war won't happen under his leadership.

    However, militarily, US is well placed to attack Iran. Victory will come tougher than it did against Iraq or Afghanistan, but victory is assured.

    If the Iranians welcome war by doing something atrocious then hell will break lose in the Middle East.
     
  21. sukhish

    sukhish Senior Member Senior Member

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    US is not attacking Iran, there is not much apitite for that. EU is the barking dog which nobody cares.
     

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